VERBUND AG — Capital/Financing Update 2006

Jan 19, 2006

News Details

Ad-hoc | 19 January 2006 20:49

Verbund increases activities on the French electricity market

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Verbund forms strong partnership with Poweo S.A. supported by a 25% equity stake and a high calibre power plant joint venture Verbund, Austria’s leading electricity company and major European hydro energy supplier, continues to expand its European activities. Pending approval by the supervisory board, Verbund plans to take a 25-percent shareholding via a capital increase in Poweo S.A., the largest independent electricity and gas supplier in France. Based on an agreed price for the capital increase of 25 EUR/ share (rate as per 18.01.2006: 22,89 EUR/share), Verbund will be spending 39 million EUR on the purchase of 1.555.000 shares. In addition, cooperation partners Poweo S.A. and Verbund intend to establish a joint venture for the construction and operation of thermal generation capacities in France. Plans for a 400 MW gas power plant have already made remarkable progress; an additional 800 MW gas power plant is planned for the future. This step significantly enhances Verbund’s position into one of the largest European power markets with a significant growth potential in the wake of the deregulation process in France. The two partners, Verbund and Poweo S.A., intend to create a leading vertically integrated electricity supplier for the French market. Österreichische Elektrizitätswirtschafts AG Am Hof 6A 1010 Wien Austria ISIN: AT0000746409 WKN: 074640 Listed: Amtlicher Handel in Wien; Amtlicher Markt (General Standard) in Frankfurt; Freiverkehr in Berlin-Bremen und Stuttgart End of ad hoc announcement (c)DGAP 19.01.2006